In a prevoius article, “Wal-Mart – Stuck in a Retail Rut“, we analyzed retail stores for a covered calls stock options strategy since fuel costs were declining and retail shoppers would have more money to spend for Christmas, etc. Every single position selected was profitable and 9 of the10 positions returned the maximum profit for a gigantic average return of +4%.
We still consider covered calls for retailers to be an attractive strategy, and we searched for potentially lucrative covered calls stock options positions using PowerOptions’ SmartSearchXL for stock options expiring in January of 2006 and found the following positions:
| SmartSearchXL covered call on November 28 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stock Sym |
Stock Price |
Option Sym |
Expire &Strike |
Opt Bid |
%Dnsd. Prot |
%If Unch. |
%If Assgnd. |
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| SHLD | 170.44 (-1.08) | KDUAN | 07 JAN 170.0 (53) | 7.60 | 4.5 | 4.4 | 4.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| JCP | 78.18 (-1.01) | JCPAP | 07 JAN 80.0 (53) | 2.30 | 2.9 | 3.0 | 5.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| TGT | 56.90 (-0.17) | TGTAK | 07 JAN 55.0 (53) | 3.30 | 5.8 | 2.6 | 2.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| WMT | 46.76 (+0.15) | WMTAW | 07 JAN 47.5 (53) | 0.95 | 2.0 | 2.1 | 3.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The SHLD and TGT positions are in-the-money [ITM] with potential returns of 4.4% and 2.6% (53 days), respectively. The JCP and WMT positions are out-of-the-money [OTM] with maximum potential returns of +5.4% and +3.7% (53 days), respectively. The ITM positions have the greater downside protections of +4.5% and +5.8% and the OTM positions have the greater potential returns of +5.4% and +3.7%.
PowerOptions provides a free 14-day trial of its service. So join PowerOptions today, and you too can start reaping the benefits of the retail covered call investment strategy.
PowerOptions provides Internet based tools for analyzing stock options with specific search criteria and for finding potentially lucrative option income. For those seeking to execute a covered call investment strategy for their personal portfolios, PowerOptions provides an Internet based search engine for finding potentially lucrative income producing covered call stock options positions.
PowerOptions’ sister company PowerOptionsApplied provides expert stock option trading recommendations. PowerOptionsApplied specializes in covered calls, iron condor and selling naked puts stock options strategy recommendations. PowerOptionsApplied provides a 30-day risk free trial of its service.
[tags]Christmas, covered call investment strategy, investment strategy, iron condor, option income, poweroptions, selling naked puts, stock option trading, stock options[/tags]